Transferring % of house ownership?

[Sterillium]

Is there a simple way to transfer a percentage of ownership of a house - or is it one of those things that mus go via solicitors etc?

There's no mortgage if that makes a difference.

[vonhosen]

You are probably talking about a significant amount of money & that makes it wise to get paid for & insured advice, rather than PH advice.

[speedyman]

Try the Co-op. Cost me £700 + vat to arrange in 2019.

[Mandat]

Sterillium said:

Is there a simple way to transfer a percentage of ownership of a house - or is it one of those things that mus go via solicitors etc?

There's no mortgage if that makes a difference.

I am a surveyor, not a lawyer, but I believe that property & land transactions must be done officially, and be registered with Land Registry.

Don't forget there might also be potential Stamp Duty to pay on the transaction.

[twokcc]

Cost me £240 with solicitor for transfer of first part second part slightly cheaper.(£200) Both to my children and no stamp duty due (under limit). Not for the house I live in.. Sale had to be reported to HMRC and CGT computation submitted-under CGT allowance of £12300.in my case Hunt has reduced this to £6k for next tax year.

[plenty]

I'm doing it right now and conveyancer fees are £535 inc. VAT.

[Sir Bagalot]

Can be done yourself.

Contact the Land Registry and ask (they are helpful). From memory you need forms AP1, TR1 and possibly LR1. You'll also need to complete their ID form. SDLT may be payable and of course you have to pay a Land Registry fee

[E-bmw]

^^^^ Wot 'e said.

Did it myself several years ago after a free 30 min consultation, pretty simple job really.

Fill a few forms in, send off (can't remember if there was a LR fee) wait a few weeks, done.

Although the property was really cheap, so may possibly differ today.

[twokcc]

To those reporting to land registry ask your solicitors about trust dead and beneficial ownership, there is no need to make any alteration to land registry if you simply want to a achieve what the original poster requested.
Still have to report transfer to HMRC and pay CGT if applicable.
IIANAL but all done via reputable solicitor for more than one property

Edited by twokcc on Friday 3rd February 09:37

[98elise]

twokcc said:

Cost me £240 with solicitor for transfer of first part second part slightly cheaper.(£200) Both to my children and no stamp duty due (under limit). Not for the house I live in.. Sale had to be reported to HMRC and CGT computation submitted-under CGT allowance of £12300.in my case Hunt has reduced this to £6k for next tax year.

Do you mean you transferred the house in two stages, and was it to spread the capital gains it over two tax years?

I've been thinking of transferring part of a property to my kids and obviously want to do it in a tax efficient way. I was thinking of 25% to both of them but do it in different tax years.

[twokcc]

98elise said:

Do you mean you transferred the house in two stages, and was it to spread the capital gains it over two tax years?

Yes, my parents house - CGT due on different between value when inherited (including costs of any capital improvements)and value at time of transfer (1/3rd each in my case) So total £25k cgt allowance over 2 separate tax years.

Just remember once transferred they have to declare rental income(if any).

[98elise]

twokcc said:

98elise said:

Do you mean you transferred the house in two stages, and was it to spread the capital gains it over two tax years?

Yes, my parents house - CGT due on different between value when inherited (including costs of any capital improvements)and value at time of transfer (1/3rd each in my case) So total £25k cgt allowance over 2 separate tax years.

Just remember once transferred they have to declare rental income(if any).

Thanks, I hadn't considered the rent. They already get a cut into their ISA's , but it would be annoying having to do more self assessments.

[Sterillium]

Thanks for the info so far - very helpful.

I probably should have explained that the house is currently owned by me and my partner split 75% - 25% and what I actually want to do is make it 50% - 50%.

[twokcc]

98elise said:

Thanks, I hadn't considered the rent. They already get a cut into their ISA's , but it would be annoying having to do more self assessments.

Remember each one can give you £3k a year without any tax implication. Will also mean that in total you could pay less tax as each owner will be able to claim £1000 per annual property tax allowance if applicable-total claimable expenses of less than £3k